On the 24th. January this year GGY closed at 9.4c. Before...

On the 24th. January this year GGY closed at 9.4c.

Before trading began on the 25th. January, GGY announced the sale of their Greenvale uranium assets.

There were a number here who thought it was a good deal. There were posts here about GGY realising significant value.

However, I posted before trade began:

Posted 25/01/07 09:08
Posted by siameseparrot
Post #1514880 - 396 reads
Start of thread

I love the wording of the text in GGY's announcement today "Significant value realised for Greenvale uranium assets."

In my opinion GGY have just about given away the uranium exploration upside.

All they have obtained is 750,000 Mega Uranium shares and a token 1% net smelter royalty of future uranium production.

The current value of the 750,000 Mega Uranium shares is $5.02 million, equal to about 2 cents per GGY share.

But it's a great deal for Mega Uranium.

Among the goodies they Mega Uranium gets for next to nothing are:

1. 100% interest in the Oasis uranium deposit, located on a 32 sq. kilometre tenement.

2. 100% of the uranium rights on GGY's other five wholly owned EPM's that cover an area of 1662 sq. kilometres! They comprise the bulk of the Greenvale Project.

3. GGY's farm in rights to 80%, that's right 80% of any uranium discovery on a joint venture with Metallica Minerals Ltd. in a 227 sq. kiometres exploration lease.

Great news, heh? Really prospective exploration plays basically given away.

Put it this way, Mega Uranium shares have to double in value for GGY's share holding in Mega Uranium to be worth an extra 2 cents a share to GGY.

Now are we going to watch all the punters rush into GGY on this great news?

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GGY opened at 8.7c - maybe some of those HC posters who thought that selling GGY's Greenvale uranium assets was a good deal went in and bought?

GGY hit a low of 6.6c and closed at 6.9c. Today GGY is a paltry 5.6c.

If I was a GGY shareholder I wouldn't be feeling too happy about what has happened. I'd also be looking at how the money from the sale is being spent.